The corona crisis fosters creativity, for thinking differently; even within your business. What do you think about investing in bitcoin? The bitcoin price is a much-discussed topic in 2020 and in this article, you will read why and why you should or should not invest.
Bitcoin in 2020: an overview
If we look at the value of the bitcoin price this year, there are a few points that stand out: the value remained somewhat stagnant around 9000 dollars in the first part of 2020. If you have no understanding of this virtual currency, this seems like a large amount. However, if you know that one bitcoin was worth as much as 20000 dollars three years earlier, then you already know enough. In March of this year, the bitcoin price plunged deep into the red, below $4000, along with the stock markets due to the Corona panic in the financial markets. The price also recovered quickly, and by May, it was back above $9000. In July, the price of bitcoin and other cryptocurrencies suddenly rose.
With a value of no less than 12500 dollars in August, this quickly became the highest value of all of 2020. There are several reasons for this. This is partly due to stocks that have become significantly more expensive in recent months. While you could do well with stocks in 2019 and earn a lot, 2020 turned out to be a bad year for investing in stocks. Bonds were also not as attractive as before; they offered and continue to offer a very low interest rate. Therefore, investors sought and are seeking other ways to invest their money, including in bitcoin and other cryptocurrencies.
How is bitcoin doing in October?
From previous experiences with extreme increases in bitcoin, we saw that a decrease in value often followed. Although the past is not a guarantee for the future, there has been a slight low point. At the end of September and the beginning of October, the value suddenly plummeted, something that had already happened earlier in September. That decline occurred after being at a high for nearly three months: bitcoin was worth over 12000 dollars in August.
Now we see a slight decline in value, but you should know that bitcoin is still worth more than before the increase. So there is not much to worry about yet. The tricky thing about something like a bitcoin price is that no one can guarantee the outcome. Otherwise, many more entrepreneurs and individuals in the Netherlands would have already started with bitcoin trading; trading in bitcoin. Nevertheless, experts do expect that it will go positively in October until the end of 2020, as analyst Wolf announced on Twitter.
To invest or not in bitcoin in 2020?
Bitcoin professionals and analysts like Wolf base this on the upward trend that is now visible, but is not yet explosive. Wolf explains on his Twitter that there is currently a so-called re-accumulation. This means that investors continue to buy bitcoin, even now when the price is very volatile. At the end of such a re-accumulation, the price can shoot up significantly; this has already happened twice before in the history of bitcoin, namely in 2013 and 2016. Based on that, you could say that investing in bitcoin now is an incredibly good idea. The chance that your investment will be worth much more in a few weeks or months is very present.
However, there are also people who say that it is now too late to invest in bitcoin if you want to benefit from it. It is good to know that the price of bitcoin can only rise with the arrival of new investors. In short: your investment helps to increase the value of bitcoin. However, you must always keep in mind that investing in bitcoin remains risky. This is because this virtual currency is very volatile; one day the value can be completely different than the next day. That is a risk you take, even if you had the guarantee that bitcoin would continue to perform well. The value of such cryptocurrencies can always go in any direction, so make sure you read up well on whether it fits your business.
